Axis Bank nudges higher on fund raising proposal

Axis Bank rose 0.81% to Rs 511.50 at 9:24 IST on BSE after the bank said it proposes to raise funds aggregating to Rs 5000 crore via issue of non-convertible debentures.

The announcement was made after market hours yesterday, 12 June 2017.

Meanwhile, the S&P BSE Sensex was up 66.61 points or 0.21% at 31,162.31.

On the BSE, 10,000 shares were traded on the counter so far as against the average daily volumes of 2.24 lakh shares in the past two weeks. The stock had hit a high of Rs 512.25 and a low of Rs 509.20 so far during the day. The stock had hit a 52-week high of Rs 638 on 7 September 2016 and a 52-week low of Rs 424.60 on 10 January 2017.

The stock had underperformed the market over the past one month till 12 June 2017, advancing 0.96% compared with the Sensex's 3.01% rise. The stock had also underperformed the market over the past one quarter, sliding 1.58% as against the Sensex's 7.43% rise. The scrip had also underperformed the market over the past one year, declining 6.26% as against the Sensex's 16.74% rise.

The large-cap bank has equity capital of Rs 479.36 crore. Face value per share is Rs 2.

Axis Bank said it proposes to raise funds by issuing unsecured redeemable non-convertible subordinated debentures, Basel-III Compliant Tier 2 debentures aggregating to Rs 5000 crore. The board of directors of the bank will consider the proposal to issue and allot the aforesaid securities through circular resolution.

Axis Bank's net profit fell 43.1% to Rs 1225.10 crore on 4.3% growth in total income to Rs 14181.31 crore in Q4 March 2017 over Q4 March 2016.

Axis Bank is one of the biggest private sector banks in India.

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